[Congressional Record Volume 145, Number 133 (Tuesday, October 5, 1999)]
[Extensions of Remarks]
[Page E2027]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         H.R. 3011, THE TRUTH IN TELEPHONE BILLING ACT OF 1999

                                 ______
                                 

                            HON. TOM BLILEY

                              of virginia

                    in the house of representatives

                        Tuesday, October 5, 1999

  Mr. BLILEY. Mr. Speaker, today I am introducing H.R. 3011, the Truth 
in Telephone Billing Act of 1999.
  This legislation is premised on a simple idea that consumers should 
know when their government is taxing them.
  This may seem self-evident to my colleagues. But in reality, 
politicians and regulators all too often attempt to withhold from 
consumers information about the government's spending habits.
  This is a particularly acute problem in the area of 
telecommunications services. The telecommunications services market has 
become a ``cash cow'' for politicians and regulators to fund their 
spending habits.
  The ``Gore Tax'' is only one example of what has become a widespread 
problem not only at the Federal level but also with state and local 
governments as well. Here's how it usually works.
  Rather than make its case for more government spending directly to 
the people, governments instead levy the tax on telecommunications 
service providers. The providers, in turn, pass the cost on to American 
consumers in the form of higher rates. What's worse, regulators then 
pressure the service provider to bury the tax in its rates, rather than 
permit the provider to clearly identify for the consumer how much of 
his or her monthly bill is attributable to government programs.
  I know this because, last year, the Committee on Commerce conducted a 
thorough investigation of the Federal Communications Commission (FCC's) 
implementation of the Gore Tax. We found that the FCC imposed 
extraordinary and unprecedented political pressure on the Nation's 
largest long distance carriers (on whom the Gore Tax is levied) to 
withhold information from their subscribers about the true cost of the 
Gore Tax.
  Whether one agrees or disagrees with the specifics of government 
spending, we should all be able to agree that the American people 
should at least know when they're being taxed, and for what purpose.
  Congress has enacted similar legislation dealing with taxation of 
cable services. As part of the 1992 Cable Act, I included a provision 
in the law that permits cable operators to place a line item on 
consumers' monthly bills that identifies the portion of the bill that 
is attributed to ``franchise fees'' that cities and counties typically 
exact from cable operators as the ``price'' for offering service. 
Again, while we may differ on the merits of a spending program, 
consumers are entitled to know when they're being taxed, and for what 
purpose.
  Accordingly, the legislation I am introducing today will ensure that 
consumers of telecommunications services will have a complete picture 
of how much their monthly bills can be attributed to government 
spending. The legislation would require each telecommunications carrier 
to identify on each subscriber's monthly statement: (1) The government 
program for which the carrier is being taxed, and the government entity 
imposing the tax; (2) the form in which the tax is assessed (e.g., per 
subscriber, per line, percentage of revenues); and (3) a separate line-
item that identifies the dollar amount of the subscriber's bill that is 
being used by the carrier to pay for the government program.
  Mr. Speaker, consumers have a right to know whenever their government 
levies taxes. By mandating that telecommunications companies identify 
these taxes through line-items, Congress will promote transparency in 
taxation.
  Moreover, this bill will help to promote the legitimacy of government 
spending when financed by consumers of telecommunications services. 
Government can never claim that its programs have the support of the 
American people when the people are unaware of the extent of the cost.
  Mr. Speaker, I urge my colleagues to join me in supporting H.R. 3011, 
the Truth in Telephone Billing Act of 1999.

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